I am trying to localize an existing app that has the following logic that tries to validate a password text box. I'm assuming that this will not work with languages with special characters that the user could type in the text box. Am I correct? I don't think that we want to restrict the user from typing non-English-type characters (i.e. arabic, chinese, etc.). Or, is there something I'm not understanding?

Good advice in general, but also completely orthogonal to the question asked. He didn't say he was storing passwords, nor does his code snippet imply that he is.
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Laurence GonsalvesSep 25 '09 at 21:00

That regular expression isn't a particularly good one, it restricts the users options and doesn't enforce anything (the passwords 'a' and 'aaaaaaa' would pass). The name suggests it was adopted from an expression that validated Hex numbers. You would at least have to add a minimum Length condition (in the reg ex or as e.Text.Length > 8).

A more sensible expression would validate that at least 1 char form several groups was used, I dug up this: @"^(?=.*[0-9])(?=.*[a-z])(?=.*[A-Z])(?=.*\W)"See here.
Again, add a minimum length check.

This example does not address the problem of localization, It allows non-latin characters only through the '.' and does not consider them satisfying the [a-z] or [A-Z] requirements.